SECURITIES AND EXCHANGE COMMISSION
                                WASHINGTON, D.C.


                                   FORM 10-QSB

[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
      EXCHANGE ACT OF 1934 FOR THE QUARTER ENDED JUNE 30, 2001

                                       OR

[   ] TRANSITION REPORT PURSUANT TO SECTION 13 OT 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ________________
      TO _______________.


                           Commission File No. 0-30001


                       DARLINGTON COUNTY BANCSHARES, INC.
             (Exact Name of Registrant as Specified in the Charter)


                   Incorporated in the State of South Carolina
                I.R.S. Employer Identification Number 57-0805621


                    202 Cashua Street, Darlington, S.C. 29532
                    (Address of Principal Executive Offices)


                                 (843) 395-1956
              (Registrant's Telephone Number, including Area Code)



     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during the  preceding  12  months(or  for such  shorter  periods  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. [ X ] Yes [ ] No

     Indicate the number of shares  outstanding of each of the issuer's  classes
of common stock, as of the latest practicable date.


Common Stock - $.01 Par Value
158,000 Shares Outstanding on August 1, 2001





<PAGE>
<TABLE>
<CAPTION>


                                     PART I
                              FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                       DARLINGTON COUNTY BANCSHARES, INC.
                           CONSOLIDATED BALANCE SHEETS
                             (DOLLARS IN THOUSANDS)

                                                                                      (UNAUDITED)              (AUDITED)
                                                                                       JUNE 30,              DECEMBER 31,
                                                                                         2001                    2000
                                                                                  --------------------    --------------------
ASSETS
     <S>                                                                                    <C>                     <C>
     Cash and due from banks                                                                $   2,367               $   1,090
     Investment securities - held to maturity                                                     720                     720
     Investment securities - available for sale                                                 5,326                   4,662
     Other investments, at cost                                                                    50                      50
     Federal funds sold                                                                         1,565                   4,420
     Loans                                                                                     19,039                  16,331
     Less allowance for loan losses                                                             (374)                   (252)
                                                                                  --------------------    --------------------

             Loans - net                                                                       18,665                  16,079

     Premises and equipment - net                                                               1,062                     875
     Other assets                                                                                 407                     574
                                                                                  --------------------    --------------------
             Total assets                                                                  $   30,162              $   28,470
                                                                                  ====================    ====================

LIABILITIES
     Deposits
        Demand deposits                                                                     $   5,326               $   4,788
        Savings and NOW accounts                                                               10,904                   9,246
        Time deposits $100,000 and over                                                         8,783                   1,722
        Other time deposits                                                                     1,434                   8,994
                                                                                  --------------------    --------------------
             Total deposits                                                                    26,447                  24,750

     Other liabilities                                                                             90                     132
                                                                                  --------------------    --------------------

             Total liabilities                                                                 26,537                  24,882
                                                                                  --------------------    --------------------

STOCKHOLDERS' EQUITY
     Common stock - $.01 par value  authorized,  issued and outstanding  158,000
        shares at June 30, 2000 and December 31, 1999
                                                                                                    2                       2
     Additional paid in capital
                                                                                                1,618                   1,618
     Retained earnings                                                                          1,982                   2,004
     Accumulated other comprehensive loss                                                          23                    (36)
                                                                                  --------------------    --------------------

             Total stockholders' equity                                                         3,625                   3,588
                                                                                  --------------------    --------------------

             Total liabilities and stockholders' equity                                    $   30,162              $   28,470
                                                                                  ====================    ====================



           See notes to consolidated financial statements.

                                       -2-

</TABLE>

<PAGE>
<TABLE>
<CAPTION>



                                              DARLINGTON COUNTY BANCSHARES, INC.
                                               CONSOLIDATED STATEMENTS OF INCOME
                                         (DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
                                                          (UNAUDITED)


                                                                THREE MONTHS ENDED                    SIX MONTHS ENDED
                                                                     JUNE 30,                             JUNE 30,
                                                         ----------------------------------   ----------------------------------
                                                              2001              2000               2001              2000
                                                         ---------------   ----------------   ---------------   ----------------
INTEREST INCOME
<S>                                                       <C>               <C>                <C>               <C>
    Loans, including fees                                 $         395     $          395     $         758     $          784
    Investment securities
       U. S. Government Agencies                                     73                 83               145                163
       Municipal securities                                           8                  8                16                 19
       Other equity securities                                        -                  -                 1                  1
    Federal funds sold and securities purchased
       under agreements to resell                                    38                 29                99                 72
                                                         ---------------   ----------------   ---------------   ----------------
            Total interest income                                   514                515             1,019              1,039
                                                         ---------------   ----------------   ---------------   ----------------

INTEREST EXPENSE
    Time deposits $100,000 and over                                  20                 25                43                 52
    Other deposits                                                  187                147               379                290
                                                         ---------------   ----------------   ---------------   ----------------
            Total interest expense                                  207                172               422                342
                                                         ---------------   ----------------   ---------------   ----------------

NET INTEREST INCOME                                                 307                343               597                697

PROVISION FOR LOAN LOSSES                                            15                 36                30                 45
                                                         ---------------   ----------------   ---------------   ----------------

            Net interest income after provision for
             loan losses                                            292                307               567                652
                                                         ---------------   ----------------   ---------------   ----------------

NONINTEREST INCOME
    Service charges on deposit accounts                              78                 56               147                109
    Other service charges, commissions and fees                       5                  6                10                 11
                                                         ---------------   ----------------   ---------------   ----------------
            Total noninterest income                                 83                 62               157                120
                                                         ---------------   ----------------   ---------------   ----------------

NONINTEREST EXPENSES
    Salaries and employee benefits                                  146                123               285                249
    Net occupancy                                                    16                 20                33                 40
    Furniture and equipment                                          13                 16                27                 32
    Other                                                           100                 94               198                184
                                                         ---------------   ----------------   ---------------   ----------------
            Total noninterest expenses                              275                253               543                505
                                                         ---------------   ----------------   ---------------   ----------------

    Income before income taxes                                      100                116               181                267
    Provision for income taxes                                       26                 36                45                 72
                                                         ---------------   ----------------   ---------------   ----------------
            Net income                                           $   74            $    80           $   136            $   195
                                                         ===============   ================   ===============   ================

PER SHARE
    Average shares outstanding                                  158,000            158,000           158,000            158,000
                                                         ===============   ================   ===============   ================

    Net income                                                  $  0.47            $  0.51                 $            $  1.23
                                                                                                         .86
                                                         ===============   ================   ===============   ================

    Dividends paid                                            $       -            $  0.65          $   1.00            $  0.65
                                                         ===============   ================   ===============   ================

           See notes to consolidated financial statements.

                                       -3-
</TABLE>

<PAGE>
<TABLE>
<CAPTION>

                       DARLINGTON COUNTY BANCSHARES, INC.
                 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                             (DOLLARS IN THOUSANDS)
                                   (UNAUDITED)



                                           COMMON STOCK                                             ACCUMULATED
                                     --------------------------
                                       NUMBER                     ADDITIONAL                           OTHER
                                         OF                        PAID IN         RETAINED        COMPREHENSIVE
                                       SHARES        AMOUNT        CAPITAL         EARNINGS        INCOME (LOSS)         TOTAL
                                     ------------ -------------  -------------  ---------------- ------------------  --------------

<S>                                      <C>      <C>             <C>           <C>                     <C>               <C>
BALANCE, JANUARY 1, 2000                 158,000  $          2    $     1,618   $         1,787         $     (103)       $   3,304

Net income for period                          -             -              -               195                  -             195

Comprehensive income, net of tax
     Net change in unrealized
       gain on securities
       available for sale                      -             -              -                 -               (38)            (38)
                                                                                                 ------------------  --------------

     Comprehensive income                                                                                                      157

Cash dividend ($.65 per share)                 -             -              -             (126)                  -           (126)
                                     ------------ -------------  -------------  ---------------- ------------------  --------------

BALANCE, JUNE 30, 2000                   158,000  $         2       $   1,618   $         1,856  $           (141)       $   3,335
                                     ============ =============  =============  ================ ==================  ==============


BALANCE, JANUARY 1, 2001                 158,000  $          2     $   1,618    $         2,004  $            (36)       $   3,588

Net income for period                          -             -              -               136                 -              136

Comprehensive income, net of tax
     Net change in unrealized loss
       on securities available for
       sale                                    -             -              -                 -                59               59
                                                                                                 ------------------  --------------

     Comprehensive income                                                                                                      196

Cash dividend ($1.00 per share)                -             -              -              (158)                -             (158)
                                     ------------ -------------  -------------  ---------------- ------------------  --------------

BALANCE, JUNE 30, 2001                   158,000  $          2     $    1,618   $         1,982  $             23     $      3,625
                                     ============ =============  =============  ================ ==================  ==============




</TABLE>








           See notes to consolidated financial statements.


                                       -4-
<PAGE>
<TABLE>
<CAPTION>

                                             DARLINGTON COUNTY BANCSHARES, INC.
                                           CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                   (DOLLARS IN THOUSANDS)
                                                        (Unaudited)

                                                                                             SIX MONTHS ENDED JUNE 30,
                                                                                        -------------------------------------
                                                                                              2001                2000
                                                                                        -----------------   -----------------
<S>                                                                                     <C>                 <C>
OPERATING ACTIVITIES
     Net income                                                                                  $   136             $   195
     Adjustments to reconcile net income to net cash provided
        by operating activities
        Provision for loan losses                                                                    122                  45
        Depreciation                                                                                  24                  28
        Decrease in other assets                                                                     167                  20
        Decrease in other liabilities                                                               (42)                (36)
                                                                                        -----------------   -----------------

               Net cash provided by operating activities                                             407                 252
                                                                                        -----------------   -----------------

INVESTING ACTIVITIES
     Decrease in Federal funds sold                                                                2,855                 820
     Proceeds from maturities of investment securities
        held to maturity                                                                               -                 301
     Proceeds from maturities of investment securities
        available for sale                                                                             -                   -
     Purchase of investment securities available for sale                                          (605)                (49)
     Net increase in loan balances                                                               (2,708)               (544)
     Purchase of equipment                                                                         (211)                   -
                                                                                        -----------------   -----------------

               Net cash provided by (used in ) investing activities                                (669)                 528
                                                                                        -----------------   -----------------

FINANCING ACTIVITIES
     Net increase (decrease) in deposits                                                           1,697               (938)
     Cash dividends paid                                                                           (158)               (126)
                                                                                        -----------------   -----------------

               Net cash provided by (used in) financing activities                                 1,539             (1,064)
                                                                                        -----------------   -----------------

               Increase (decrease) in cash and cash equivalents                                    1,277               (284)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                                     1,090               1,409
                                                                                        -----------------   -----------------

CASH AND CASH EQUIVALENTS,  END OF PERIOD                                                       $  2,367            $  1,125
                                                                                        =================   =================


SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
     Decrease (increase) in net unrealized gains on securities available for sale                $    59              $    6
                                                                                        =================   =================

CASH PAID FOR
     Interest                                                                                    $   432             $   340
                                                                                        =================   =================

     Income taxes                                                                                $    86             $    44
                                                                                        =================   =================


           See notes to consolidated financial statements.

</TABLE>

                                       -5-


<PAGE>


                       DARLINGTON COUNTY BANCSHARES, INC.
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1 - BASIS OF PRESENTATION

           The accompanying unaudited financial statements have been prepared in
accordance with generally accepted  accounting  principles for interim financial
information  and  with the  instructions  to Form  10-QSB  and  Item  310(b)  of
Regulation S-B of the Securities and Exchange Commission.  Accordingly,  they do
not  include all  information  and  footnotes  required  by  generally  accepted
accounting principles for complete financial statements. However, in the opinion
of management,  all  adjustments  (consisting of normal  recurring  adjustments)
considered necessary for a fair presentation have been included.

NOTE 2 - NET INCOME PER SHARE

           Net income per share is computed on the basis of the weighted average
number of common shares  outstanding  in accordance  with Statement of Financial
Accounting  Standards No. 128,  "Earnings per Share". The Bank does not have any
instruments  which are dilutive;  therefore,  only basic net income per share of
common stock is presented.

NOTE 3 - ORGANIZATION

           Darlington County Bancshares,  Inc. (the "Company"), was organized in
July 1999 for the purpose of being a holding company for Darlington  County Bank
(the  "Bank").  On July 1, 1999,  pursuant  to a Plan of Merger  approved by the
shareholders,  all of the  outstanding  shares of capital stock of the Bank were
converted  into  shares of common  stock of the  Company  (and the Bank became a
wholly-owned  subsidiary of the Company). A par value conversion of $788,000 was
recorded in July 1999 to reflect a change in the par value of common  stock from
$5.00 per share to $.01 per share. The Company  presently engages in no business
other  than  that of owning  the Bank and has no  employees.  Reporting  periods
presented  earlier than July 1, 1999 include the operations of Darlington County
Bank only.

ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS

           The following  discussion and analysis  should be read in conjunction
with the financial  statements and related notes appearing in the Company's 2000
Annual Report to  Shareholders.  Results of operations for the six months ending
June 30, 2001 are not  necessarily  indicative of the results to be attained for
any  other  period.  The  following  information  may  contain   forward-looking
statements that involve risks and  uncertainties.  The Company's  actual results
may  differ  materially  from  the  results  discussed  in  the  forward-looking
statements.

FORWARD-LOOKING STATEMENTS

           This report contains certain  forward-looking  statements (as defined
in the  Private  Securities  Litigation  Reform  Act of 1995) to  assist  in the
understanding of anticipated future operating and financial performance,  growth
opportunities,  growth  rates,  and other similar  forecasts  and  statements of

                                       -6-
<PAGE>
expectations.  These  forward-looking  statements reflect current views, but are
based on assumptions and are subject to risks,  uncertainties and other factors,
which  may  cause  actual  results  to  differ  materially  from  those  in such
statements.  These factors include, but are not limited to, the following: risks
from changes in economic,  monetary policy and industry  conditions;  changes in
interest  rates,  deposit rates,  the net interest  margin and funding  sources;
market risk; inflation; risks inherent in making loans including repayment risks
and value of collateral;  loan growth; adequacy of the allowance for loan losses
and the  assessment of problem loans;  fluctuations  in consumer  spending;  the
demand  for  our  products  and  services;   dependence  on  senior  management;
technological  changes;  ability to increase market share;  expense projections;
estimates of  impairment  loss;  changes in accounting  policies and  practices;
costs and effects of litigation; and recently-enacted or proposed legislation.

           Such  forward-looking  statements  speak only as of the date on which
such   statements   are  made.   We  undertake  no   obligation  to  update  any
forward-looking  statement to reflect events or circumstances  after the date on
which such statement is made to reflect the occurrence of unanticipated  events.
In addition,  certain statements in future filings by us with the Securities and
Exchange  Commission,  in press releases and in oral and written statements made
by or with the approval of  Darlington  County  Bancshares,  Inc.  which are not
statements of historical fact constitute forward-looking statements.

SIX MONTHS ENDED JUNE 30, 2001 COMPARED TO SIX MONTHS
 ENDED JUNE 30, 2000

RESULTS OF OPERATIONS -
   The  Company's net income for the six months ended June 30, 2001 was $136,000
   or $0.86 per share as  compared  to  $195,000  or $1.23 per share for the six
   months ended June 30, 2000.  The  decrease in net income  resulted  primarily
   from lower net interest income of $100,000.

NET INTEREST INCOME
   Net interest income is the difference  between the interest earned on earning
   assets and the interest paid for funds acquired to support those assets.  Net
   interest income,  the principal  source of the Bank's earnings,  was $597,000
   and $697,000 for the six months ended June 30, 2001 and 2000, respectively.

ITEM 2: (CONTINUED)

   Changes  that affect net  interest  income are  changes in the  average  rate
   earned  on  interest-earning  assets,  changes  in the  average  rate paid on
   interest-bearing  liabilities,  and changes in the volume of interest-earning
   assets and interest-bearing liabilities.

   Interest-earning   assets  for  the  second  quarter  of  2001  increased  by
   $2,441,000  or 10.22%  over the same period in 2000,  while  interest-bearing
   liabilities increased by $3,451,000 or 15.01% comparing the second quarter of
   2001 with the second quarter of 2000.

                                       -7-
<PAGE>
<TABLE>
<CAPTION>

                                                        AVERAGE BALANCES, INCOME AND EXPENSES, AND RATES
                                                                FOR THE SIX MONTHS ENDED JUNE 30,
                                        ------------------------------------------------------------------------------------
                                                          2001                                      2000
                                         ------------------------------------------ ----------------------------------------
                                            AVERAGE       INCOME/      ANNUALIZED      AVERAGE     INCOME/      ANNUALIZED
                                            BALANCE       EXPENSE      YIELD/RATE      BALANCE     EXPENSE      YIELD/RATE
                                         -------------- ------------- ------------- -------------- ----------- -------------

<S>                                         <C>          <C>                 <C>       <C>         <C>                <C>
Federal funds sold                          $3,196,165   $   99,000          6.19%     $2,324,945  $   72,000         6.19%
Investment securities                        5,725,955      162,000          5.66%      6,026,070     183,000         6.07%
Loans                                       17,988,693      758,000          8.43%     16,579,574     784,000         9.46%
                                         -------------  -----------                 -------------  ----------

     Total earning assets                 $ 26,910,813    1,019,000          7.57%   $ 24,930,589   1,039,000         8.34%
                                          ============                               ============

     Total interest bearing liabilities   $ 25,693,852      422,000          3.28%   $ 24,054,021     342,000         2.84%
                                          ============  -----------   -----------    ============  ----------  -----------

Net interest spread                                                          4.29%                                    5.50%

Net interest income/margin                                $ 597,000          4.44%                  $ 697,000         5.59%
                                                        ===========   ============                 ==========  ============

</TABLE>

As  reflected  above,  for the first six  months  of 2001 the  average  yield on
earning   assets  amounts   amounted  to  7.57%,   while  the  average  cost  of
interest-bearing liabilities was 3.28%. For the same period of 2000, the average
yield on  earning  assets  was 8.34% and the  average  cost of  interest-bearing
liabilities  was  2.84%.  The  decrease  in  the  yield  on  earning  assets  is
attributable to the overall decreasing rate environment where interest sensitive
loans  reprice  more  quickly  than  deposits.  The  Bank  also  had a group  of
certificates  of deposits  that matured and were renewed in the second  quarter,
but  increased  overall  interest  expense  during the quarter The net  interest
margin is computed by  subtracting  interest  expense from  interest  income and
dividing  the  resulting  figure by  average  interest-earning  assets.  The net
interest  margin for the period  ended June 30,  2001 was 4.44% and for 2000 was
5.59%.  This decrease  resulted from the lowered rates earned on earning  assets
because of the Federal Reserve's lowering of rates six times since January 2001.

The following  table  represents  changes in the  Company's net interest  income
which  are   primarily   a  result  of  changes  in  volume  and  rates  of  its
interest-earning  assets and interest-bearing  liabilities.  The decrease in net
interest  income is due to an  increased  volume  and rate on  interest  bearing
liabilities and a decrease in rates on interest  earning  assets,  off set by an
increased volume of interest-earning assets.
<TABLE>
<CAPTION>

                                         ANALYSIS OF CHANGES IN NET INTEREST INCOME

                                                                                 FOR THE SIX MONTHS ENDED
                                                                                JUNE 30, 2001 VERSUS 2000
                                                                -------------------------------------------------------------
                                                                     VOLUME                 RATE             NET CHANGE
                                                                -------------------  -------------------  -------------------

<S>                                                              <C>                 <C>                   <C>
Federal fund sold                                                $        26,980     $              20     $         27,000
Investment securities                                                     (9,114)              (11,886)             (21,000)
Loans                                                                     66,633               (92,633)             (26,000)
                                                                -------------------  -------------------  -------------------

       Total earning assets                                               84,499              (104,499)             (20,000)

       Total interest on interest-bearing liabilities                     23,315                56,685               80,000
                                                                -------------------  -------------------  -------------------

Net interest income                                               $      (61,184)        $    (161,184)        $  ( 100,000)
                                                                ===================  ===================  ===================

                                                       -8-
</TABLE>


<PAGE>
ITEM 2: (CONTINUED)

NONINTEREST INCOME
   Noninterest  income  for the six  months  ended  June 30,  2001 and 2000 were
   $157,000 and  $120,000,  respectively.  Noninterest  income  increased due to
   higher service fees on deposit accounts.

NONINTEREST EXPENSES
   Noninterest  expenses  for the six months  ended June 30,  2001 and 2000 were
   $543,000 and  $505,000,  respectively.  Noninterest  expenses  increased as a
   result of cost of living raises in salaries.

ALLOWANCE FOR LOAN LOSSES

   The allowance for loan losses was 1.97% of loans, net of unearned income,  as
   of June 30, 2001  compared to 1.41% at June 30, 2000.  The provision for loan
   losses was $30,000  and  $45,000  for the six months  ended June 30, 2001 and
   2000,  respectively.  Management  reviews the adequacy of the allowance on an
   ongoing basis and believes the allowance is adequate to cover possible losses
   in the loan portfolio.

THREE MONTHS ENDED JUNE 30, 2001 COMPARED TO THREE MONTHS ENDED JUNE 30, 2000

RESULTS OF OPERATIONS - THREE MONTHS ENDED JUNE 30, 2001
   The Company's  net income for the second  quarter of 2001 was $74,000 or $.47
   per share  compared  to $80,000  or $.51 per share for the second  quarter of
   2000.

NET INTEREST INCOME
   Net interest income is the difference  between the interest earned on earning
   assets and the interest paid for funds acquired to support those assets.  Net
   interest income,  the principal  source of the Bank's earnings,  was $307,000
   and $343,000 for the quarters ended June 30, 2001 and 2000, respectively. The
   decrease in net interest income of $36,000  resulted from overall lower rates
   on earning  assets.  The Bank also has a significant  number of deposits that
   will mature over the next three  months,  which will renew at lower rates and
   improve net interest income in future quarters.

NONINTEREST INCOME
   Noninterest  income for the three  months  ended June 30,  2001 and 2000 were
   $83,000 and $62,000,  respectively.  Noninterest  income increased due to the
   increase in interest-bearing liabilities.

NONINTEREST EXPENSES
   Noninterest  expenses  for the three months ended June 30, 2001 and 2000 were
   $275,000 and $253,000, respectively. Noninterest expenses increased

FINANCIAL CONDITION


LIQUIDITY
   Liquidity  is the  ability to meet  current  and future  obligations  through
   liquidation or maturity of existing assets or the acquisition of liabilities.
   The Company manages both assets and liabilities to achieve appropriate levels
   of liquidity.  Cash and  short-term  investments  are the  Company's  primary
   sources of asset liquidity.  These funds provide a cushion against short-term
   fluctuations  in cash flow from  both  deposits  and  loans.  The  investment
   portfolio  is the  Bank's  principal  source of  secondary  asset  liquidity.
   However,  the  availability  of this source of funds is  influenced by market
   conditions.  Individual and commercial deposits are the Bank's primary source
   of funds  for  credit  activities.  Management  believes  that the  Company's
   liquidity sources are adequate to meet its operating needs.


                                       -9-
<PAGE>

ITEM 2: (CONTINUED)

LOANS
   Commercial,  financial and agricultural loans made up 29.3% of the total loan
   portfolio as of June 30, 2001,  totaling  $5,588,000.  Loans  secured by real
   estate for construction and land development totaled $1028,000 or 5.4% of the
   total loan  portfolio  while all other loans  secured by real estate  totaled
   $8,751,000  or  46%  of  the  total  loan  portfolio  as of  June  30,  2001.
   Installment loans and other consumer loans to individuals  comprised 19.3% of
   the total loan portfolio totaling $3,676,000.


CAPITAL RESOURCES
   The  capital  base for the  Company  increased  by $37,000  for the first six
   months of 2001. This net change includes an increase to equity for net income
   of $136,000 and an increase in unrealized  gains on investment  securities of
   $59,000,  offset by cash dividends paid of $158,000.  The Company's equity to
   asset ratio was 12.02% on June 30, 2001, as compared to 12.6% on December 31,
   2000.

   The  Federal  Deposit   Insurance   Corporation  has  issued  guidelines  for
   risk-based capital  requirements.  As of June 30, 2001, the Bank exceeded the
   well-capitalized capital requirement levels that are to be maintained.
<TABLE>
<CAPTION>

                                                        CAPITAL RATIOS
                                                    (AMOUNTS IN THOUSANDS)
                                                                                                            ADEQUATELY
                                                                             WELL CAPITALIZED               CAPITALIZED
                                                    ACTUAL                     REQUIREMENT                  REQUIREMENT
                                          ---------------------------- ---------------------------- ---------------------------
                                             AMOUNT         RATIO         AMOUNT         RATIO         AMOUNT        RATIO
                                          -------------- ------------- ------------- -------------- ------------ --------------
<S>                                          <C>               <C>        <C>               <C>       <C>               <C>
Total capital (to risk weighted assets)      $  3,976          20.3%      $  1,704          10.0%     $  1,363          8.0%

Tier 1 capital (to risk weighted assets)        3,602          18.4%         1,023           6.0%          682          4.0%

Tier 1 capital (to average assets)              3,602          12.3%         1,332           5.0%        1,065          4.0%
</TABLE>

ASSET QUALITY
   Nonperforming assets as a percentage of loans and foreclosed property totaled
   .98% and  5.77% as of June 30,  2001 and  December  31,  2000,  respectively.
   Nonperforming  assets  were  $186,181  as of June 30,  2001 and  $940,491  at
   December 31, 2000. The  nonperforming  assets at December 31, 2000 included a
   farm loan totaling  $926,000 of which  $740,000 was  guaranteed  and received
   from the US Government.

 EFFECTS OF REGULATORY ACTION
   The management of the Company is not aware of any current  recommendations by
   regulatory  authorities,  which if they were to be implemented,  would have a
   material effect on liquidity, capital resources, or operations.

IMPACT OF INFLATION
   Unlike most  industrial  companies,  the assets and  liabilities of financial
   institutions  such as the Bank are primarily  monetary in nature.  Therefore,
   interest rates have a more significant  impact on the Bank's performance than
   do the effects of changes in the  general  rate of  inflation  and changes in
   prices.  In  addition,  interest  rates do not  necessarily  move in the same
   magnitude  as the  prices of goods and  services.  As  discussed  previously,
   management  seeks to manage  the  relationships  between  interest  sensitive
   assets and  liabilities in order to protect  against wide rate  fluctuations,
   including those resulting from inflation.

RECENTLY ISSUED ACCOUNTING STANDARDS

   In  July 2001,  the SEC  issued  Staff  Accounting  Bulletin  (SAB) No. 102 -
   Selected Loan  Loss Allowance  Methodology  and  Documentation  Issues.  This
   staff  accounting  bulletin  clearly  defines   the   required   development,
   documentation,  and application  of  a systematic methodology for determining
   allowances for loan  and lease losses in  accordance with generally  accepted
   accounting  principles.  The Company believes  that  it is in compliance with
   SAB 102. Additional  accounting  standards  that have been issued or proposed
   by  the  FASB  that do not   require  adoption  until a  future  date are not
   expected  to  have a material impact on the consolidated financial statements
   upon adoption.

                                      -10-
<PAGE>
PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

There are no  material  pending  legal  proceedings  to which the Company or its
subsidiary party or of which any of their property is the subject.

ITEM 2.  CHANGES IN SECURITIES

Not Applicable

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

Not Applicable

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS


(a)  The Company held its annual meeting of shareholders on April 24, 2001.

  The following  persons were elected as directors of the Company with the votes
shown:
<TABLE>
<CAPTION>

                             Name                                      For                      Withhold
            -----------------------------------            -----------------------            --------------

           <S>                                              <C>          <C>                    <C>
           Raymond Galloway                                 92,044       (58%)                  200 (.12%)
           R.E. Goodson, Sr.                                92,244       (58%)                      0
           Charles G. Howard                                92,044       (58%)                  200(.12%)
</TABLE>

ITEM 5.  OTHER INFORMATION

None

ITEM 6. EXHIBITS AND REPORT ON FORM 8-K

None


                                      -11-
<PAGE>

SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the Company
has duly  caused  this  report  to be signed  on its  behalf by the  undersigned
thereunto duly authorized.

        DARLINGTON COUNTY BANCSHARES, INC.
        ----------------------------------



By:  /s/ W. B. McCown, III                       Date: August 15, 2001
     ---------------------------------------           -----------------------
     W. B. McCown, III, President and
     Chief Executive Officer


By:  /s/ Albert L. James, III                    Date: August 15, 2001
     ---------------------------------------           -----------------------
     Albert L. James, III
     Treasurer (Principal Financial Officer)












                                      -12-